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NIGERIA · MARKETS
Key Facts
- —What happened Dangote Petroleum Refinery signed the offer documents for its initial public offering, or IPO — the first sale of its shares to the public — at a ceremony in Lagos on Monday.
- —The offer 4.1 billion shares at N525 each (about US$0.40), aiming to raise N2.15 trillion (about US$1.63 billion). Subscription runs September 14 to October 13, with trading expected to start in late November on the Nigerian Exchange.
- —The expansion Proceeds help fund a N18.9 trillion (about US$14.3 billion) project to double capacity from 700,000 to 1.4 million barrels per day by 2029.
- —The profit swing The refinery earned US$1.82 billion after tax in the first half of 2026, against a US$476 million loss for the whole of 2025.
- —The safety net A US$400 million underwriting commitment is already secured, and a “greenshoe” option allows up to 30% more shares if demand exceeds the base offer.
- —Why it matters At full subscription it would be the largest IPO in African history, and it lands while Nigeria’s stock market leads the continent with a 73% dollar return this year.
The Dangote refinery signed its IPO documents in Lagos on Monday and used the moment to publish a US$14.3 billion plan to double its capacity to 1.4 million barrels per day by 2029. The share sale, opening September 14, would be the biggest in African history.
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What was signed in Lagos
Signing offer documents with advisers is the formal step that turns a planned listing into a live transaction. It fixes the timetable and the terms on which the public can buy in.
The company will offer 4.1 billion ordinary shares at N525 apiece (about US$0.40), raising N2.15 trillion (about US$1.63 billion) if fully subscribed. The offer opens on September 14 and closes on October 13, and an indicative timetable has the shares trading in late November.
Naira figures in this article convert at the rate quoted with the offer, 1,320.83 naira to the dollar.
Two protections sit behind the sale. Underwriters have committed US$400 million, meaning part of the offer is effectively pre-sold. And if demand outruns supply, a greenshoe option — named after the first company to use one — lets the refinery issue up to 30% more shares, subject to regulatory approval.
The US$14.3 billion build the IPO pays for
The purpose of the listing is growth. The refinery plans to spend N18.9 trillion (about US$14.3 billion) over the next five years to double its processing capacity from 700,000 barrels per day to 1.4 million, with completion targeted for 2029.
Not all of that comes from new shareholders. Net IPO proceeds of roughly N2.11 trillion (about US$1.60 billion), after an estimated N41.49 billion (about US$31 million) in offer costs, cover only part of the program; the rest is to come from the refinery’s own earnings and from loans and project financing.
At 1.4 million barrels per day the plant would rank among the largest single-site refineries in the world. Aliko Dangote, Africa’s richest man and the group’s founder, told the ceremony he expects the complex to become the world’s biggest single-train refinery by 2028.
Why investors are being shown a profit
The prospectus arrives with a strong earnings story. The refinery recorded an after-tax profit of US$1.82 billion in the first six months of 2026, after losing US$476 million across the whole of 2025.
The plant, built for about US$20 billion on the outskirts of Lagos and in operation since 2024, has reshaped Nigeria’s fuel market and profited from supply disruptions linked to the Iran war, exporting jet fuel across Africa and into Europe.
Dangote was careful at the ceremony to say that windfalls from the conflicts in the Middle East and Ukraine are not the basis of the investment case. The claim he is selling is structural: that African fuel demand will outgrow local supply for decades.
Who else wants a piece
Dangote also disclosed that ADNOC, the state oil company of the United Arab Emirates, is interested in investing in the refinery alongside other potential investors. He gave no further detail.
Separately, the group is planning to build a refinery on Kenya’s coast in partnership with East African governments, extending the model beyond Nigeria.
The offer is aimed mainly at retail investors — ordinary Nigerians, the diaspora and buyers across Africa — rather than only institutions. David Bird, the refinery’s chief executive, said the goal is to widen ownership of the asset.
The market it lands in
The timing is not accidental. The Nigerian Exchange has reclaimed its position as Africa’s best-performing stock market, delivering a 73.1% dollar return by September 4, helped by a steadier naira.
A sale of this size will test whether that rally reflects deep demand or thin liquidity. Either way, the listing changes the exchange itself: the refinery has applied to list its existing 120.13 billion shares alongside the new ones, which would make it the dominant stock in Lagos by a wide margin.
For Nigeria, the stakes go beyond finance. A refinery that ends fuel imports, exports to the region and now opens its share register to the public is becoming a piece of national economic infrastructure — one whose performance ordinary citizens will soon be able to own, and to judge, directly.
Frequently asked questions
When does the Dangote refinery IPO open?
Subscriptions run from September 14 to October 13, 2026. An indicative timetable has the shares starting to trade on the Nigerian Exchange in late November.
How much is the Dangote refinery trying to raise?
It is offering 4.1 billion shares at N525 each (about US$0.40), targeting N2.15 trillion (about US$1.63 billion), with an option to sell up to 30% more if the offer is oversubscribed.
What is the US$14.3 billion expansion plan?
A five-year project to double refining capacity from 700,000 to 1.4 million barrels per day by 2029, funded by the IPO proceeds, the refinery’s own profits and additional financing.
Is the Dangote refinery profitable?
Yes. It earned US$1.82 billion after tax in the first half of 2026, compared with a US$476 million loss for the whole of 2025, helped by strong jet fuel exports.
Is this really Africa’s biggest IPO?
At the targeted size, yes — no share sale on the continent has raised as much. A US$400 million underwriting commitment is already in place.
Sources: Reuters; CNBC Africa; Dangote Refinery IPO presentation (Lagos, September 7, 2026).
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error
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